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Suez Canal to Diversify Income Sources Through Logistical Projects

An aerial view of the northern entrance to the Suez Canal in Egypt. (Reuters)
An aerial view of the northern entrance to the Suez Canal in Egypt. (Reuters)
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Suez Canal to Diversify Income Sources Through Logistical Projects

An aerial view of the northern entrance to the Suez Canal in Egypt. (Reuters)
An aerial view of the northern entrance to the Suez Canal in Egypt. (Reuters)

The Suez Canal Authority (SCA) is seeking to diversify sources of income by establishing logistical and maritime projects that serve the global trade movement in the region, announced Chairman Osama Rabie.

On Wednesday, Rabie discussed ways to enhance cooperation with the Italian shipping line with MESSINA CEO Ignazio Messina and Executive Director Stefano Messina.

Rabie lauded the longstanding relationship with MESSINA, which has recently seen an increase in the number of vessels transiting through the Suez Canal despite the challenges in the Red Sea region.

The chairman stressed the authority's commitment to boosting cooperation with its clients and leveraging collaboration to open new horizons through partnerships and investments, diversifying sources of income, and establishing logistics and maritime projects that serve global trade movements in the region.

Messina confirmed the company's intention to increase the number and capacities of its vessels transiting through the Suez Canal in the coming period.

The expansion aligns with the group's policy focus and plans to acquire and construct large-capacity container ships to operate on maritime routes in the Middle East and Africa.

The CEO expressed his eagerness to strengthen cooperation with the Suez Canal Authority.

He proposed joint efforts in providing logistical services to elevate the Suez Canal's leading position.

He also expressed a commitment to supporting the canal's transformation into a regional hub for maritime and logistical services in the Middle East and Africa.

MESSINA was established over a century ago. Since the 1930s, it has maintained cooperative relations with the Suez Canal Authority. One of the group's vessels was among the first to transit the canal after reopening in 1975.

On Monday, President Abdel Fattah al-Sisi confirmed that Suez Canal revenues had dropped between 40 and 50 percent since the beginning of this year due to the disruption of navigation traffic in the Red Sea as a result of the Houthi attacks.

Rabie recently said that revenues had declined from $804 million recorded in January last year to $428 million during the same month this year, a drop of 46%.

The canal's revenues constitute one of Egypt's most prominent sources of foreign exchange revenues.

In the fiscal year 2022-2023, the channel generated $9.4 billion in revenues, the highest annual revenue recorded, a 35% increase compared to the previous year.

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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)

Egyptian Tourism Minister Sherif Fathy told Asharq Al-Awsat that he and Saudi Tourism Minister Ahmed Al-Khateeb have agreed to collaborate on several tourism initiatives.

These include joint marketing efforts, shared tourism programs, environmental protection measures, and promoting specific types of tourism in the Red Sea.

Fathy recently visited Riyadh, where he met with Al-Khateeb and engaged with Saudi business leaders. They discussed ways to promote tourism between their countries and increase visitor exchanges.

During his visit to the United Nations World Tourism Organization (UNWTO) regional office in Riyadh, Fathy stated that the office’s presence in Saudi Arabia enhances the organization’s work in the region and improves communication with other countries.

He confirmed that they plan to develop and implement the agreed initiatives in the near future.

Fathy highlighted that the Middle East is a key player in global tourism and deserves a dedicated office to support all countries in the region. This effort aims to boost collaboration and promote the Middle East as a top destination for travelers.

Tourism, National Economy: A Path to Sustainable Growth

Samer Al-Kharashi, Director of the UNWTO regional office for the Middle East, stated that the office supports 13 countries in the region, with Egypt being a key member.

He highlighted that the recent visit by Egypt’s Minister of Tourism and Antiquities, who serves as Vice President of the regional committee, creates opportunities for collaboration.

This partnership aims to boost tourism’s role in the national economy, create jobs, and promote sustainable practices that protect the environment.

Speaking to Asharq Al-Awsat, Al-Kharashi emphasized the potential for cooperation with Egypt, which has a rich tourism history and many ancient sites. He noted that the regional office has the expertise to assist member countries.

Al-Kharashi expressed optimism about the discussions, which covered various opportunities for joint projects that would benefit both Egypt and the wider region.

Strengthening Bilateral Relations

Fathy’s visit to the UNWTO regional office aims to enhance bilateral relations, as Cairo actively seeks to develop its tourism sector through international collaboration.

During their meeting, Fathy and Al-Kharashi addressed key issues facing Egypt’s tourism sector, including challenges and growth opportunities. They explored future cooperation, particularly in tourism training, improving services, and increasing investments.

Egypt ranks first in Africa, fifth in the Middle East, and 63rd globally on the Travel and Tourism Development Index.

The UNWTO regional office in Riyadh is the first of its kind outside the organization’s headquarters, dedicated to supporting member states in the Middle East.

The office focuses on promoting tourism education, improving infrastructure, and fostering sustainable tourism while preserving the region’s cultural and environmental heritage.